Archive for lv real estate
No Fault Short Sales
Posted by: | Comments
…a common phrase which comes up in conversation when consulting with our short sale clients. For several months more and more homeowners have come forward gasping for information about short sales…and NOT because they lost their job or their mortgage rate adjusted higher. While there are still so many challenged with such financial dilemmas, the face of short sellers is truly evolving…increasingly the only dilemma for some is that their home value may NEVER recover during the time they own it. They are tied to a non-performing, money-sucking asset. They want to know how this happened to them and what they should do.
THE HOW…
“Supply Creates Its Own Demand”
For years the Las Vegas real estate market had a steady appreciation rate. Chatter could be heard among those in the industry speculating that as land became more scarce, property values would increase at a more rapid pace…a classic case of supply and demand. This environment paused briefly after September 11th because such a national tragedy created a sense of hesitation in making large decisions and buying a home was no exception. Then…slowly at first…in late 2002 and 2003 buyers returned in higher numbers, but our housing supply didn’t keep up. Suddenly, January 2004 hit and buyer demand exploded while the housing supply was simply anemic. The perfect storm of a seller’s market occurred and some Las Vegas zip codes values shot up by 50% by June 2004. The measurable peak for most areas didn’t occur until sometime in 2005 or 2006. For an extended instant, it seemed as if everyone who bought anytime before early 2004 was financially set with massive growth in their home equity. As for so many who bought after 2004, well, Las Vegas was becoming (and some would say actually is) an eastern suburb of Los Angeles and the higher prices were both justified and sustainable.
Risks and Rewards
In that long moment of perceived prosperity, who complained? Did you? Were you a homeowner who cashed in some equity to buy a car or another home or a pool? Did you prudently choose to not touch your loan or only refinance into a lower interest rate with no cash out? Remember, the “free market” – the capitalist system that allows individuals to freely seek a credit card, a car loan, or a home loan – is a system where participation is voluntarily and based on choice. When you buy a home, you buy into this system, and when the system helps increase your home value, you accept the reward freely, don’t you?
The Market Giveth and the Market Taketh
In late 2006/early 2007 the Las 
Vegas real estate market stalled, then with each surprise revelation of the lending and financial systems, the market dropped. With each adjustable rate mortgage adjusting higher, increasing numbers of homeowners could not refinance because their home values dropped below their loan amounts. Eventually foreclosures came on like a torrent and some home values appeared to measurably decrease in only 90 days by as much as 20%. Suddenly, the housing supply exploded and buyers tippy-toed under cover…they didn’t want to be exposed to the uncertain mess that seemed to pervade our economy. When this first wave of homeowners lost their homes – and the machinations of some “too big to fail” institutions did just that…failed – the system that all other homeowners bought into erased the equity and home values they took for granted. The risk was exposed. Who’s fault was it? While that has been, and will continue to be, a source of study and debate, homeowners still look at us and say, “It’s not my fault…I have a good job…good credit…I pay all my bills…I have a great loan…I bought my home before the huge rise in prices…why do I have to pay for other people’s bad loans and bad decisions?” In the most direct way, fault has little to do with it. Remember, the markets giveth and the markets taketh. Once you buy into the market – into our “free market” financial system – you are by nature a participant. The rewards are easy to accept, and the risks, a potential outcome few are guaranteed to avoid.
THE ACTION…
The bottom line – currently in Las Vegas home values have decreased to levels not seen since the 1990’s, and in some areas, arguably since the 1980’s. As a result, most Las Vegas homeowners have no equity in their home or are upside down. If you need or want to get rid of your home, regardless of your motivation or financial situation, you must first determine your current home value. Referencing the taxable value from the Clark County Assessor’s Office give a clue as well as online resources such as Zillow. Your best reality check, however, will always be a market analysis created by a REALTOR®…from someone who lives and breathes the local real estate market full-time. If your REALTOR® confirms that you are upside down, then you need to work with them, your accountant, and an attorney or qualified advisor to determine your best course of action. Ultimately, you are looking for the best of the worst options – short sale, foreclosure, and/or bankruptcy. Get used to associating these words and concepts in the scope of your life and your reality. The sooner you understand which option be applies to you, the more proactive you become, the better off you will be in moving forward towards your future.
Are you considering a short sale? Do you want to know how much your home is worth? Contact Stephanie at 497-7705 or stephanie@realtyaccess.net to proactively investigate options for your future.
Home Buyer Tax Credit Extension Good News for Las Vegas Sellers
Posted by: | Comments
The recent extension and modification of the home buyer tax credit is good news for sellers in Las Vegas and should continue to spur sales in our market.
The National Association of Realtors economists estimate that the current first-time buyer tax credit has contributed about $22 billion to the national economy, and about 2 million people will take advantage of the tax credit this year.
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers.
For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.
The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.
Read more …
Las Vegas Real Estate Market Report: 10/21/09
Posted by: | CommentsThis is the latest Las Vegas Real Estate Market Report from www.NARREIA.com (National Association of Residential Real Estate Investment Advisors). For the week of October 21, 2009, data is obtained from the Greater Las Vegas Association of Realtors MLS.
Single Family Residence (SFR)
Available – 8,198 (-56 , Last Week 8,254)
Under Contract – 12,087 (+20 , Last Week 12,067)
Days of Supply – 20 (-1 , Last Week 21)
Short Sales – 10,444 (+12 , Last Week 10,432)
Condominiums and Town Homes (CONDO/TH)
Available – 2,105 (-78 , Last Week 2,183)
Under Contract – 2,917 (+0 , Last Week 2,917)
Days of Supply – 22 (+0 , Last Week 22)
Short Sales – 2,724 (-10 , Last Week 2,734)
Combined SFR + CONDO/TH
Available – 10,303 (-134 , Last Week 10,437)
Under Contract – 15,004 (+20 , Last Week 14,984)
Days of Supply – 21 (+0 , Last Week 21)
Short Sales – 13,168 (+2 , Last Week 13,166)
Las Vegas Real Estate Market Report: 09/30/09
Posted by: | CommentsHere is the latest Las Vegas Real Estate Market Report from www.NARREIA.com (National Association of Residential Real Estate Investment Advisors). For the week of September 28, 2009, data is obtained from the Greater Las Vegas Association of Realtors MLS.
Single Family Residence (SFR)
- Available – 9,087 (-152 , Last Week 9,239)
- Under Contract – 10,771 (+96 , Last Week 10,675)
- Days of Supply – 25 (-1 , Last Week 26)
- Short Sales – 9,169 (+59 , Last Week 9,110)
Condominiums and Town Homes (CONDO/TH)
- Available – 2,895 (-37 , Last Week 2,932)
- Under Contract – 2,507 (+40 , Last Week 2,467)
- Days of Supply – 35 (-1 , Last Week 36)
- Short Sales – 2,446 (+15 , Last Week 2,431)
Combined SFR + CONDO/TH
- Available – 11,982 (-189 , Last Week 12,171)
- Under Contract – 13,278 (+136 , Last Week 13,142)
- Days of Supply – 27 (-1 , Last Week 28)
- Short Sales – 11,615 (+74 , Last Week 11,541)
Serra Group Featured Listings in Las Vegas
Posted by: | CommentsAre you a Las Vegas Homeowner facing a possible foreclosure or considering a short sale?
Contact us for a free consultation regarding your options – there are solutions!
Call 702 – 497-7705
Las Vegas Short Sales, REO Listings
Posted by: | Comments
Another great product from Cincopa Send Files. Also read about Cincopa best wordpress plugins for your website.
NV Law Change October 1 Restricts Deficiency Judgments on Foreclosed Homes
Posted by: | CommentsRobert Noggle, attorney with Black Lobello law firm, explains the new Nevada Deficiency Law that takes effect on October 1, 2009 in this guest contributor post.
“Change to Nevada Law prohibits deficiency judgments for loans made after October 1, 2009 to purchase primary residences.”
Nevada currently provides for the right of a foreclosing lender on real estate to pursue a deficiency judgment against the borrower on any type of property including a primary residence. Nevada is known as a full recourse state. The law provides for a six month period following the trustee’s sale in which the lender may file an action against the borrower to recover amounts owing.
Effective October 1, 2009, Nevada becomes a limited recourse state similar to California. Loans made after October 1, 2009; by a financial institution to a borrower who continuously occupies the property as a primary residence are nonrecourse. This means that the lender may not pursue a foreclosed borrower to recover a deficiency. Although some may consider this the equivalent of sending life boats and vests to the Titanic days after the sinking, it is a significant development in Nevada real estate law.
For the new law to apply the following requirements must be met:
- The real property is a single-family residence;
- The loan was used to buy the property;
- The borrower continuously occupied the property as a principal residence after the loan was made;
- The original loan was not refinanced;
- The loan was made by a financial institution.
The Fundamentals of a Short Sale
Posted by: | Comments
Short sales have exponentially increased in Las Vegas in the last few months and will continue to grow in market share as banks implement newer streamlined procedures and see the cost benefits over foreclosures.
Although a short sale in real estate is not always a easy process, the right help and guidelines can make it manageable. A lender will accept a short sale, that is accepting less than the total amount due when it makes financial sense to do so. Most lenders have different requirements and may demand that a borrower submit a wide array of documentation, but the following steps will give you a pretty good idea of what to expect.
1. Call the Lender. This may take numerous attempts to reach the right person responsible for short sales. Remember you want to talk to someone in the “loss mitigation” or “loan workout department” and always get the name of the individual capable of making the decision.
2. Submit Letter of Authorization. Lenders will not talk or release any information to anyone but you without authorization. If you are working with a real estate agent, attorney, or third party negotiator, you will need to give your permission for disclosure to theses parties.
3. Net Sheet. This is an estimated closing sheet that shows all of the costs related to selling your home and if your not familiar with what this would be, your real estate agent or attorney can prepare this for you.
4. Hardship Letter. This is a simple statement from you describing your hardship and why you can no longer continue to live in the home or make the payments.
5. Proof of Income and Assets. Lenders will want to know of ALL assets which would include but not be limited to cash, stocks or bonds, money market accounts, other real estate, negotiable instruments, or anything else of value.
6. Copies of Bank Statements. If you have had unusual large withdrawals or a large number of checks, you might want to have a concise explanation for them.
7. Comparative Market Analysis. The fact that your homes property value has fallen below what is owed on it can be substantiated through a comparative market analysis or CMA. This can be prepared for you by your real estate agent and will show the sale of similar properties in your neighborhood.
8. Full Purchase Agreement. The lender will want to have a copy of the purchase agreement that you have made with a potential buyer. The lender will approve or disapprove the price based on their “bottom line” and expect negotiations.
And finally if all goes well, you will have an accepted short sale!
Are you a Las Vegas Homeowner facing a possible foreclosure or considering a short sale?
Contact us for a free consultation regarding your options – there are solutions!
Call 702 – 497-7705
